Recently, SoYoung’s main APP was removed from the Apple App Store because it did not have the right to use the Class 9 trademark. SoYoung’s trademark loophole may directly cause unpredictable losses. Start-ups, don’t you still pay attention to the value of trademarks?

Recently, SoYoung’s main APP was banned from the Apple AppStore because it did not have the right to use the trademark in Category 9 of the main business category (downloadable computer application software, applications for smartphones, tablets, etc.) After being removed from the shelves, there are only two "small packages" of "SoYoung Micro Plastic Surgery" and "SoYoung Youth Edition" in the Apple store. The vast majority of SoYoung users are no longer able to update the APP because the main package has been removed from the shelves.

SoYoung’s trademark loophole this time may directly cause unpredictable losses

First of all, SoYoung’s pursuit of listing may be forced to stop. The China Securities Regulatory Commission clearly stipulates in the "Administrative Measures for the Initial Public Offering and Listing of Stocks" that issuers should legally possess the ownership or use rights of trademarks related to their production and operations. The trademark loophole obviously means that SoYoung no longer meets this condition, and the situation will be even more severe in the US and Hong Kong stock markets where intellectual property rights are particularly important.

Secondly, there may be certain difficulties in launching the Apple AppStore again. According to Apple's AppStore regulations, infringing applications will no longer be put on the shelves before the trademark ownership is clear, and users who previously downloaded the APP will no longer be able to update subsequent versions.

Finally, some losses may be caused to users and investors. As the trademark incident unfolds, SoYoung may gradually lose contact with the 20 million users it previously claimed. For users, being unable to use the APP means that they cannot meet their normal needs for placing orders and obtaining information. For transactions that have already generated orders, users may have to lose some funds and delay related medical and aesthetic treatments. For investors, SoYoung’s current difficulties in both business and capital markets may put investors in a disadvantageous situation.

We say starting a business is difficult, but defending a city is also difficult. After going through initial difficulties, many start-up companies have found themselves in deep trouble because of a small trademark.

In November 2007, the listing of Jiangxi Tianshikang Traditional Chinese Medicine Co., Ltd. was rejected. One of the reasons was that the use of its "Kang Enba" trademark relied on related parties. The company has not yet been listed.

In April 2010, from the time the court officially accepted Apple’s trademark lawsuit against Proview, the two parties finally settled after two years and three months of first instance, appeal, and second instance: Apple The payment of US$60 million to Shenzhen Proview was evaluated as: "Elephant" lost to "Ant".

Unfortunately, not all companies can learn from this.

In November 2012, the network storage application 115 Netdisk was removed from many Android application markets such as Yingyinghui and Anzhi. The reason was a complaint of infringement from the "115" trademark holder.

At the end of 2014, the women’s social platform “Xiyou” was forced to be removed from major application markets and was eventually renamed “Meiyou”.

In March 2015, there were 81 applications for trademark registration of "WeChat", of which only 32 were submitted by Tencent. As powerful as Tencent, it must also attack on all sides and adopt multiple means such as acquisitions and arbitration to recover.

In 2015, Zhejiang Red Dragonfly Shoes was reported by others due to a trademark dispute and had to announce a suspension of stock issuance at the critical moment one day before going public

A well-known example is Jordan Sports. It had planned to be listed before the end of March 2012, and attracted much attention because of its status as "the first A-share sports shoes and apparel stock". However, a lawsuit filed by sports star Michael Jordan completely shattered Jordan Sports' plans. In the following five years, Qiaodan Sports continued to rush to go public, but suffered multiple failures.

In the future, a large number of start-up companies may follow in the footsteps of their predecessors.

The social app "Tantan", the Class 9 trademark belongs to a company called Beijing Suoming Science Park Co., Ltd., and Tantan Culture Development (Beijing) Co., Ltd., the parent company of "Tantan APP" , only owns the “TANTAN” English trademark and the graphic trademark of Tantan’s logo, and the trademarks are full of loopholes.

The familiar “Bingo Xiaoxiaoxiao” is also at risk of litigation due to its lack of trademark ownership on Class 9 goods.

Trademarks are not only the intangible assets and intellectual property rights of an enterprise, but also the extension of the enterprise's brand value. For Internet companies, the importance of trademarks may be even more prominent.

To a large extent, they are all online service companies based on information and data, and trademarks, as an information resource, also have the function of transmitting information. This means that trademarks are often the symbol of Internet companies’ products and services. Their appearance represents their corporate image and reputation, and also represents the inherent quality of products and services.

In today's world where the influence of intellectual property rights is becoming more and more profound, the development of enterprises is inseparable from the operation and use of trademarks. The prerequisite is to have the right to use trademarks. Therefore, start-up companies should strengthen their understanding of the value of trademarks. For start-up companies, only by relying on trademarks to accumulate more assets and build better brands can they survive in the fierce market competition.

Alibaba, which has been tested by the strict rules of the U.S. capital market, has a deep understanding of the importance of trademarks. The trademark defense wall is impregnable and it has embraced more than 10,000 trademarks. Ali’s mother, Ali’s father, Ali’s grandfather, Ali’s grandma—all are Alibaba. JD.com, which had a dispute with Alibaba over the "Double Eleven" trademark, is well aware of this and even protected "Liu Qiangdong" in all categories.

Start-ups, have you paid attention to trademark issues?